The Broadmoor | Colorado Springs, CO

The Independent Petroleum Association America’s (IPAA) will be hosting its’ 2nd Annual Access & Resource Development Conference on June 27th at The Broadmoor. The conference will address issues involving federal land access, energy development and the challenges facing both producers and consumers of oil and natural gas in the United States. There will be three panels including individuals from federal agencies, conservation groups, and other trades. The luncheon speaker will be a governor from the West.

The next day will kick-off IPAA’s Midyear Meeting. Registration will open soon. Visit IPAA’s meetings website for the most up-to-date information.

So the weather in Palm Beach wasn’t 80 and sunny; the presentation room at OGIS Florida last week was bustling and filled with great networking! There was no need for pools or white sand…

To hear the 19 engaging presentations you missed, visit the meeting archives and listen to the webcasts provided. Be sure to make note of your favorites, most of these companies can also be heard at IPAA’s upcoming showstopper, OGIS New York, April 16-18, 2012. U.S. Energy, Far East Energy, Samson Oil and Gas Limited and GMX Resources, Inc., to name a few, are all coming back for our spring symposium.  

For more information on OGIS New York, including how to register and make a hotel reservation, click here.

Thank you to all who participated in OGIS Florida. I hope you enjoyed the Four Season’s jumbo shrimp cocktail (and the conference) as much as I did!

IPAA’s 18^th Annual Texas Wildcatters’ Open is scheduled for March 22 at Blackhorse Golf Club in Cypress, Texas. Last year’s tournament welcomed more than 300 players and 50 sponsors, with more than 40 door prizes distributed at the dinner/awards ceremony. Sponsorship is the only way to guarantee your spot in the tournament. Space is limited, so view the sponsorship opportunities and make your selection today!

IPAA’s Private Capital Conference to Welcome Arthur L. Smith, CFA as its’ Keynote Speaker

Tuesday, January 24
The Westin Houston, Memorial City
                                                                                                           

Arthur L. Smith (Art) will be the keynote speaker of IPAA’s Private Capital Conference on January 24 at the Westin Houston, Memorial City. Art founded Triple Double Advisors, LLC in August 2007 after he completed the sale of John S. Herold, Inc. to IHS, the global information specialist. He serves as portfolio manager and oversees the firm’s energy research. From 1984 to 2007, Art was Chairman and CEO of John S. Herold, Inc. where he helped guide the growth of Herold into a widely-recognized independent authority in oil and gas research and consulting. From 1976 to 1984, he was an energy equity analyst with Argus Research Corp., The First Boston Corporation and Oppenheimer & Co., Inc. Art currently serves on the Board of Directors of PAA Natural Gas Storage, L.P. and Pioneer Southwest Energy Partners, L.P. Previously, he has served on the boards of Plains All American L.L.P., Pioneer Natural Resources, Cabot Oil & Gas Corporation, Evergreen Resources, Inc., Parker & Parsley Petroleum, the New York Society of Security Analysts, and was a past appointee to the National Petroleum Council. Mr. Smith received a BA from Duke University and a MBA from New York University’s Stern School of Business. Smith is the author of the work – Something from Nothing – which chronicles the career of Joe B. Foster and the success of Newfield Exploration Company.

You don’t want to miss hearing this legend of the industry speak. Onsite registration is still available.

These words are splashed across the headlines, sounding doom, gloom, and fear– but it’s important to truly analyze the geopolitics at work here. Iran is threatening to block the Strait of Hormuz. But what does this actually mean for the United States, which doesn’t receive oil directly from Iran?

IPAA’s chief economist, Fred Lawrence, broke it down in a Declaration of Independents analysis. Essentially, the Strait of Hormuz is one of the most important trade passageways in the world. The US Dept. of Energy defines the Strait as “the world’s most important oil chokepoint, with an average of 14 supertankers passing through it every day, most of them heading towards Japan, South Korea, India and China.”

Asia and Europe would feel this supply shock most of all because these are “two regions with growing import dependence on the Middle East.” Luckily for the United States, “Our total import dependence is declining. U.S. net imports have dropped from over 60 percent of our total consumption in 2005 to around 45 percent in 2011 through November…52 percent of our oil imports emanate from the Western Hemisphere.” This is due in large part to the increased shale oil reserves, made accessible by the combined technologies of hydraulic fracturing and horizontal drilling.

Although the U.S. is clearly more insulated from Middle East supply shocks, we are far from isolated. The growing interdependence of global markets makes any economic hit to European or Asian markets a close second hit to the U.S. markets. As the analysis outlines,

“Given the current debilitated state of world markets, every bit of negative economic news from Europe or China exacts a toll on our recovering economic markets because they are two of our top trading partners. Any oil shock of this magnitude would pass quickly through the global business cycle as energy costs directly impact trade flows, industrial activity and consumer spending which comprises over two-thirds of the U.S. economy.”

Thus, the negative effects of a Strait of Hormuz shut-down would certainly hit the United States – although not as hard as it would hit Asia and Europe. In our globalized world, any drama featuring the remarkably strategic and crucial commodity of oil will have ripple affects felt the world over.

Click here to read the analysis and to view original charts and graphs.

IPAA’s Private Capital Conference (PCC) has the session for you. On January 24, 2012 at The Westin Houston, Memorial City IPAA will host its’ PCC conference. The second session titled “New Capital Sources” will feature five speakers who will discuss how they approach the investment process, what they think about current commodity prices and how they can be approached to support new clients. This session is sure to give you some new ideas on where and how to invest to receive the greatest ROI.

Registration is now open. Visit the meetings webpage for a complete list of speakers.

Registered to attend OGIS Florida but need a place to stay? Rooms at the Four Seasons Palm Beach (conference location) are running out fast…but thankfully, IPAA has secured a DISCOUNTED room just for you! Be sure to call the hotel by Wednesday, January 11 to receive a discounted room rate of only $299. 

Book Your Beachfront Room Today! Call: 561-582-2800

p.s. Still need to register for OGIS Florida? Check out my post on registration and begin preparing for this stellar opportunity!

On Tuesday, immediate past IPAA chairman Bruce Vincent discussed America’s optimistic energy outlook on CNBC’s “Street Signs” in New York City.

In the in-studio interview, Bruce explained, “The American people need to recognize that we have incredible resources in this country. We could become the leading producer of oil in the world, surpassing Russia, surpassing Saudi Arabia all because of these wonderful resources plays in America.” In response to environmental concerns, Bruce also asked people to look at the facts of hydraulic fracturing which is a safe “completion method that industry has used for sixty plus years.” He also described the amazing economic and energy security that increased oil and natural gas production would bring the United States.

To watch the video, please visit the IPAA Youtube channel.

Today, Ohio Treasurer Josh Mandel’s must-read op-ed ran in the Wall Street Journal. The article highlighted the amazing opportunities the Utica shale play grants for Ohio and the major roadblocks from Washington that seek to threaten them. Josh Mandel is also running for the U.S. Senate in Ohio.

Clearly Mandel understands that the oil and natural gas industry is a major jobs creator and that other industries ranging from manufacturing to construction to service industries also reap the benefits. Unfortunately, the Obama administration has halted the sale of drilling rights in Ohio’s national forest. And by one estimate, the article says, the administration has killed or threatened more than 200,000 jobs.

Here are some highlights:

JOBS

“The Ohio leases would have included parcels in three counties badly hurting for jobs…A September study for the Ohio Oil & Gas Energy Education Program found that production in the Utica shale formation has the potential to create more than 200,000 Ohio jobs by the year 2015.”

MANUFACTURING

“Along with Republic Steel, U.S. Steel has also announced new jobs and expansion in Ohio, in its case to meet demand for steel piping created by shale exploration. Vallourec & Mannesmann plans to build a plant in Youngstown, breathing new life into the heart of the rust belt. The Canton-based steel manufacturer Timken recently said that its planned expansion is motivated in part by strong sales to oil and gas companies, which make up 20% of the company’s sales.”

CHEAPER ENERGY

“Exploration in the Utica shale could also mean cheaper utility bills for consumers. A Pennsylvania State University study published in July found that natural gas prices there dropped by 12.6% in 2010, saving consumers $633 million. The U.S. Energy Information Administration says that summer 2011 natural gas prices in the Northeast were 2%-15% lower because of increased shale production.”

Please click here to read the full article.

Yesterday, IPAA’s immediate past chairman and Swift Energy president Bruce Vincent appeared on Fox Business Network’s ‘After the Bell’ to discuss the critical and growing role that job-creating American oil and natural gas production continues to play in driving economic growth while also strengthening our nation’s security. Vincent notes that at current rates, forecasts show that by 2017, the United States can be the world’s largest oil producing, making America “less dependent on foreign sources, which actually enhances national security as well.”

Bruce said it better than I can, so without further ado, here is the video below.